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Page 1: Engro Foods Marketing
Page 2: Engro Foods Marketing

Marketing Final Project Presentation

Professor Madiha Munawar

Group MembersUsman Manzoor (0083)Maryam Hussain (0078)Zunaira Shakeel (0085)Umm-e-Rubab (166)

Page 3: Engro Foods Marketing

Engro Corporation Introductiono Engro Corporation Limited (formerly known as .Engro

Chemical Pakistan Limited.) is one of the largest industrial corporations in Pakistan.

o It operates in various sectors• Fertilizer• Food• Energy• Chemical• Business Automation Solutions

Page 4: Engro Foods Marketing

Business Type

Fertilizer Food Beverages Chemicals Polymers Power Generation Petrochemical

Page 5: Engro Foods Marketing

Engro Foods Ltd Introduction o Engro Foods Limited was formed as a wholly owned

subsidiary of Engro Corporation in 2005.o It start its operation in 2006 and become major player

in Food industry.o It launches multiple products

• Ice Cream • Flavored Milk • Fruit Juices • Milk Powders

Page 6: Engro Foods Marketing

Vision & Mission Statement

Vision Statement

 

“To be the premier Pakistani enterprise with a global reach, passionately

pursuing value creation for all stakeholders”

Mission Statement

“Our mission is twofold, to help farmers maximize their farm produce by

providing quality plant nutrients and technical services upon which

they can depend. To create wealth by building new businesses based

on company and country strengths in petrochemicals, information

technology, infrastructure, food and other agriculture sectors.”

Page 7: Engro Foods Marketing

Objectives and goals: 

Engro Foods main objectives are to supply everyone their favorite Olper’s Milk and to

satisfy the consumer need and wants. EngoFoods second objective is to increase the value for the stakeholders and company value.

We want to be the major player in the food industry.

Page 8: Engro Foods Marketing

Introduction to Leaders

Mr. Hussain Dawood(Chairman)

Mr. Asad Umer (Ex. President & CEO)

Mr. Ali-u-din Ansari (President & CEO)

Page 9: Engro Foods Marketing

Quick Facts & Figures 12 Brands

1,243 Employees

45% Market Share of Dairy Products

Market Share in 310 Cities in Pakistan18 states in USA4 Provinces in Canada

18th Largest Customer of Tetra Pak World Wide

2nd Largest Company of Chilled Milk Collection of Pakistan

900 Milk Collection Centers

35,000 farmers directly linked with EFL

Page 10: Engro Foods Marketing

Products Portfolio

Page 11: Engro Foods Marketing

Competitors

Page 12: Engro Foods Marketing

Business Level Strategy: Engro Foods wants to achieve more market share

than other competitors. In order to achieve the more competitive advantage company uses the differential strategy by differentiate its products

from other competitors. Engro Foods differentiate itself in the form of taste, quality and availability of their product in the market.

Page 14: Engro Foods Marketing

Market Segmentation:

  Demographic Segmentation

 Psychographic Segmentation

  Behavioral Segmentation

 

Page 15: Engro Foods Marketing

Demographic SegmentationEngro foods are not particularly bound with any age pr any lifecycle stage.

The brands of Engro Foods are made for all level and middle and low level classes of Pakistan

Psychographic Segmentation On the basis of psychographic, factors such as personal traits, brand loyalty,

personal satisfaction, values, lifestyles Engro Marketers segment market according to these particular factors to get more and more sales and

company goodwill and fame

Behavioral Segmentation Engro product have been segmented into the behaviors and perceptional

factors that consumers get benefits and values for Engro's products by using their Milk and Other brands that loyally fulfill their level of

satisfaction and other factors that directly target to their behaviors towards the brands and the company

Page 16: Engro Foods Marketing

Engro Foods Marketing Mix Strategies

Page 17: Engro Foods Marketing

Product

Product Variety: A wide range of dairy ice creams and frozen deserts.

Quality: Premium ice cream rich in calcium and which is fresh every time.

Design: Includes ice pop, Choc bar, dairy ice cream and pop sticks.

Features: Made from fresh milk and ice cream and high nutrition

Product Names: Olpers, Olfrute, Omore Omung Lassi, Dairy Omung Olwell, Frozen ice pops

Packaging: High quality and eye catching packing, Packing color ranges red, blue, yellow, orange and green. Packaging is colorful

Sizes: Sizes includes 1ltr. And half ltr. For dairy milk, chic bars serve ice cream are of different sizes.

Service: Satisfying customers with warranty and money back guarantee

Returns: Only in case when products are expired

Page 18: Engro Foods Marketing

PriceCups Rs 20

Soft Serve ice cream Rs 10-50

1Ltr. Ice cream Tub Rs 150

2 Ltr. Ice cream Tub Rs 275

Cones Rs 30

Ice pop Rs 10

Olpers per Ltr. Rs 105

Olwell Cream Rs 80 The prices of its competitor (WALLS) more or less the same and

price of liter ice cream is less then Walls which is great strategy Omore offers a 16% margin to retail traders and shop keepers

which are slightly lower than Walls, who offer a margin of 20% to shopkeepers. They are new in the market and do not have the

same relationship with retailers like Walls

Page 19: Engro Foods Marketing

PlaceChannels: Sells directly to the end user through retailers and

shopkeepers. This is trend in Pakistan followed by many FMCG’s.

Coverage: Engro Products for the time being is only available in limited areas on Punjab and available throughout Pakistan. The company started off its operation in Punjab because it has the largest population.

Transport: Engro products are transported to retailers and shopkeepers through private transportation firms and also through few trucks owned by company

Locations: Available at large/medium and small sized bakeries, grocery stores and pharmacies in Pakistan-Sell their products directly to consumers using cycles and their own personnel. This strategy has been in practice for many years and is being used by Walls and Hico.

Page 20: Engro Foods Marketing

PromotionAdvertising: Vehicle Advertising, Outdoor billboards, Point of

sale Displays and Ads on televisions. Advertisements are mostly colorful reminiscent to their ice cream packaging. When Engro foods was initially launched they adopt a unique way of advertising.

Message: Linked Engro foods with joy and happiness so their tagline/ slogans is ART OF HAPINESS linked with consumers and got review of different product using various medium social communications e.g. Facebook and Orkut linked their ice cream with other brand names like Olpers and Olwell. This promoted their other brands as well which are also relatively new in the market.

Page 22: Engro Foods Marketing

Strength

Quality products Suitable Brand Names Good Packaging Motivational Slogans Best Marketing Campaign Strong Relationship with Farmers Strong back by Engro Corporation Good Consumer Response Strong Research & Development

Page 23: Engro Foods Marketing

Weaknesses

Depend on Tetra Pack No Powder Milk Production Ability Engro Foods have 40 milk collection

center in Pakistan which are not enough for increased demands

Have only one Dairy farm which is not enough provide required quantity of Milk

 

Page 24: Engro Foods Marketing

Opportunity

Increase in consumption of processed milk by the consumer

Population growth High migration rate of people to Cities Flexible Government policy for food industry Improvement in Literacy Rate Have enough funds to expand their Operations

 

Page 25: Engro Foods Marketing

Threats

High Inflation Rate Law and Order Situation Low purchasing power of the People Giant Competitor in the Market New Companies Arrival

 

Page 26: Engro Foods Marketing

Recommendations/ Suggestions

Engro Foods should have much diversified bi-product line of dairy products

like Nestle & Haleeb.

They should introduce new promotions to get customers’ attention

EFL should expand its dairy farms so that they can get competitive advantage.

EFL should focus on Market Penetration, Market Development and Product

Development strategies with more efforts to be the market leader.

They should go expand its capacity to enter into in international market like

Nestle.

Engro Foods can be into Co-branding with other brands like Olper’s with

Lipton tea bags, Olper’s with different biscuits etc. to increase their sales

They can also move towards other foods products like Nestle launch Kit Kat

Chocolate, Meggi Noodles, Sweets Candies etc.

Page 27: Engro Foods Marketing

Conclusion Engro is going to be a market leader due to different reason like its financial

position, product quality, R & D, market share, sales growth etc. Its price is more or less equal to its competitors, it matches its quality with its competitors and capturing its competitor’s share from market. Engro is using its brand name and its packaging is good to promote its products and EFL is becoming very popular as compared to its competitors.

  Company has planned to make Omore world class premier quality brand like

existing brands of Engro Foods. Company is also working on cereals in coming years. They has planned to move other dairy products as are offering by its competitors Nestle like yogurt, flavoured yogurt (raita), cereal for babies etc. Foods competitors Nestle and Haleeb are biggest threat. There are opportunities and doors for new players are open who can be the future competitors.

Consumer is aware now, there is need to maintain the quality of products. Consumers perceptions and price differentials can cause threat for the company, Consumer’s preferences changes timely and prices might create certain barriers in terms of the profit margins for ENGRO FOODS.

In short Engro Foods should grow and maintain its position. That is why EFL is increasing Market Penetration, Market Development & Product Development strategies.

Page 28: Engro Foods Marketing

THANK YOU

Questions & Answers